Update on the EU’s Proposed Financial Transactions Tax

The Court of Justice of the European Union recently issued a decision rejecting the UK government’s initial legal challenge against the proposed introduction in Europe of a financial transactions tax (FTT) – a tax to be levied at fixed low rates on certain transactions involving financial instruments such as shares, bonds and derivative contracts. The following week, 10 of the 11 EU Member States that have been supporting the FTT issued a joint declaration re-stating their determination to “finalize viable solutions” for the FTT by the end of 2014 and to commence the “progressive implementation” of the tax by 1 January 2016.